SAFE-HIGH YIELD RETURNS and YOU

 

The Days of Wine and Easy Credit

Economists know and understand that there are no magic ways to wealth or no secret means to riches. To succeed and accumulate wealth over current consumption, one must work hard, save the surpluses, and then invest wisely. There can be no miracles produced by governments, exaggerated economic theories, wiffenpoofs, or "yes we can" sloganeering.

Easy credit has disappeared and will not soon become available to the general public. The credit engine's fuel cut-off results in a contraction for major industries such as major appliance manufacturers, automobile producers and construction companies. Moreover, a debt laden American public, up to its collective eyeballs in debt, has re-discovered the merits of thrift and saving by necessity. Since consumer spending comprises over 65% of the total economy, the contraction in the equities and commodities markets are inevitable.

Banksters and Adam Smith

Banks are being closed at an alarming rate with the Federal Deposit Insurance Corporation (FDIC) broke or nearly so. More "money" will be allocated to them by the Congress as has just been done with Fanny Mae and Freddy Mac who are now part of the federal government. Fanny and Freddie's "serious delinquencies" are up 172% through October from one year ago. With a new wave of defaulted residential mortgages on the horizon, and with commercial real estate not far behind, who can put the American Humpty-Dumpty economy back together again?

The "Lazy Fairy" (laissez faire) has long been executed and those in charge at the Federal Reserve and Treasury Department bring forth moronic, if not imbecilic, patchwork programs to show they are doing something. The beauty of the capitalist system, like Darwinian Theory, was survival of  the fittest. A great fraud has been perpetrated upon We the People and the United States dollar which is fast becoming confetti-like.

Loons of the World- UNITE

The U.S. dollar has lost about one-half of its value in relation to Euro Currency (Euro). How did this happen? We did it to ourselves. Recall all the talk about a Global Economy, free trade, and, mutual interdependence? We cannot have smokestack industries polluting our environment so instead we can hear a "loud, sucking sound" of U.S.-based jobs heading for "Outsourcelandia". The former Federal Reserve chairman, Alan Greenspan, not only failed in his job to remove the "punch-bowl" as the party overheated, he took a bath in it. And, us along with it! We were provided a tech bubble at the century's ending with fast and loose money creating a housing bubble several years later. His successor, Ben Bernanke, prefers to distribute currency from a helicopter, if necessary.

As we approached the edge of the cliff, the Fed doubled the money supply and a newly minted administration has run up a gigantic I.O.U. to be paid by generations yet to come. Add to that the proposed "health care" entitlement program, soon to be enacted into law by a compliant Congress, even as the Medicare and Social Security "trust funds" go unfunded to the tune of nearly $63 Trillion. Meanwhile, the U.S. stock market and many bourses around the world have suffered a severe decline in the value of their corporate stock, mortgage-backed securities have undone large and small banks, having made other financial institutions bleed to death, and major industries unsustainable without the lubricant of commerce, i.e., credit.

Serendipity Surfaces

The United States is not alone in debasing its currency. "Everyone" seems to be doing it so, in the end, where will the U.S. dollar rank among the currencies? Over three quarters plus to 1 July 2009, specimen central banks have swelled their balance sheets thusly:

• European Central Bank-  39%
• Swiss National Bank- 80%
• U.S. Federal Reserve- 119%
• Bank of England- 127%

The share of U.S. dollars added to foreign central banks reserves in the third quarter was less than 30%, an unprecedented drop as they diversify away from dollars. So it is difficult to say but the financial glue which holds the investment universe together is the ten-year Treasury bond. Paying 3.8% as of late December, this has allowed more currency to be printed, and makes it difficult for private lenders to make profits whenever they do lend. Why because banks can borrow money at the federal funds window for almost nothing and then loan it back to the federales at the higher rate with a guaranteed profit.

The FED's Folly

As year end is near, the Fed's Balance Sheet has ballooned to $2.22 Trillion, very close to an all-time high. U.S. government obligations exceed $115 Trillion, a debt to GDP ratio that puts it "off the charts". This has created a need for funds from private sources to finance many economic activities to keep the overall economy alive and a willingness to pay higher rates of interest for those funds. It is clear that the Fed has lost control of the bond markets due to record Treasury bond auctions overwhelming its ability to contain interest rates. The Treasury market is coming unraveled quickly. Rising yields on Treasuries will put pressure on interest rate-sensitive stocks and downward pressures in housing will keep pressure on credit-sensitive stocks.

A  Life Ring in a Sea of Inflation

Almost everyone is familiar with "The Oracle of Omaha", Warren Buffet, who is one of the richest men in the world. Mr. Buffet puts nearly $300 Million dollars into the insurance industry each and every month. Why? Because Warren Buffet knows that few places exist for an investor to place money where that money can grow safely. You can now enjoy fixed rates of return between 10 and 15 percent subject to availability.

A major life insurance financial programs company now provides a proprietary Private Insurance Lending Agreement program, PILA offering:

• A safe instrument that preserves one's principal and earns a high rate of return.
• A completely non-securities related financial strategy not effected by fluctuations in stocks, bonds, or interest rates.
• A short-term lending instrument that does not tie up money for long periods.
• A high return on a $50,000.00 minimum investment.
• A qualified plan for IRA's, SEP's, Coverdell ESA's, IRC Sect. 401, 403, and 457.

Claim your FREE report on how to maximize your shrinking U.S. dollars' value and protect your Qualified Plan dollars. Fill in the information below and it will be sent to you immediately by e-mail along with a most unusual power point presentation.

 

DO IT NOW!!!

We detest SPAM and Spammers. Your name will never be sold or passed to any other entity.